An Investigation on the Impact of COVID-19 Pandemic on New Zealand’s Knitwear Manufacturing Sector

Figures & data

Figure 1 Flow of wool through New Zealand’s strong wool value chain (Adapted from Conforte, Dunlop, and Garnevska 2011).

Table 1. Participant information.

Alphabetical names	Position in company	Employees working	Details on manufacturing	Commercial participation
Company A	Managing director	150	Own and other brands	Wholesale, exporting
Company B	Managing director	87	Own brand	Retail, wholesale, exporting
Company C	Managing director	34	Own and other brands	Wholesale, exporting
Company D	Managing director	20	Own and other brands	–
Company E	Director	12	Own brand	Wholesale
Company F	Managing director	12	Own and other brands	Retail, wholesale, exporting
Company G	Managing director	12	Own and other brands	Retail, exporting

Figure 2 Manufacturers’ reliance at various parts of the supply chain.

Figure 3 Impact on the supply chain.

Table 2. Selected quotes from survey participants on the impact of border restrictions.

Company name	Quote from participants
Company E	“Catastrophic”
Company D	“Never made us so busy. Many companies bringing their production back from China to New Zealand”
Company G	“Slow delivery of raw materials. Increased shipping cost”

Figure 4 Impact on domestic sales.

Figure 5 Impact on international sales.

Figure 6 Future business plans.

Figure 7 Review of government support.

Table 3. Some direct quotes from participants on additional help sought from the government.

Company name	Quotes from participants on additional help from the government
Company B	“Would like ongoing wage support to keep skilled people on board to buy us time as we pivot and focus on new markets, or different angles of the same market”
Company E	“More business grants, export support needed”
Company D	“Have Trade New Zealand more focused on helping all manufacturers, not just some selected ones”
Company C	“Need to focus on buying locally for government contracts”
Company F	“Stop increasing the cost of labour by large amounts. Extra week sick leave, 5 percent minimum wage increase, stopping me from growing my business”
Company G	“Increase focus on easing restrictions to local manufacturing. Reduce depreciation time for machinery etc. Balance conditions for manufacturing such as we are increasing the minimum wage, work compliance costs etc., but are importing from countries with terrible workplace conditions and pay scales”

Table 4. SWOT analysis of New Zealand’s knitwear manufacturing sector.

Strengths	Weaknesses	Opportunities	Threats
Historically rooted Advanced technology Automated machinery High-quality raw material Unique natural fibres and innovative blends Design capabilities Good production quality Strong R&D activities Organised vendor base Socially and environmentally compliant	Labour shortages Reliance on foreign suppliers for yarn manufacture Talent gaps in running machinery Fall in sales post-pandemic Dependence on tourist traffic for domestic sales Few ancillary industries like dyeing, printing, embroidery, etc. Higher cost of production Underdeveloped recycling technology Lack of direct government support	Increasing global demand for knitted products Huge scope in high-performance sportswear Innovative yarn blends Unexplored international markets Increasing online sales growth “Made in New Zealand” has a strong overseas reputation Country’s strong economy post-COVID-19 Consumer awareness of sustainable products	Impact of COVID-19 on global economy New Zealand’s ageing workforce High cost of production Market competition on price front Limited size of the domestic market Cheaper labour in other countries Availability of cheaper knitted products overseas High freight costs and increasing shipping delays

Conforte, Daniel, Samuel Dunlop, and Elena Garnevska. 2011. “New Zealand Wool inside: A Discussion Case Study.” International Food and Agribusiness Management Review 14 (1030-2016-82797): 147–178. https://www.ifama.org/resources/Documents/v14i3/Case-Conforte-Dunlop-Garnevska.pdf.

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